What is PGI

Insurance that stands behind your great ideas

Most business loans make you personally liable. Personal Guarantee Insurance reimburses most of that liability if the guarantee is ever enforced.

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The starting point

What a personal guarantee actually does

Most business lending in Canada requires the owner to sign one. It is easy to sign and easy to underestimate.

You pledge yourself, not just the company

A personal guarantee lets the lender pursue your personal assets if the business cannot repay the loan.

Your home and savings are in scope

Personal property held outside the business can be used to satisfy the debt after a default.

It outlasts the business

A judgment on a guarantee can follow you personally for years after the company has closed.

What PGI covers

A defined limit on your personal exposure

One policy that sits behind your guarantee and pays you, not the lender, when a demand is validated.

$1,000,000
Maximum coverage
Per personal guarantee
80%
Of your obligation reimbursed
You retain the remaining 20%
A+
AM Best carrier rating
The strength banks rely on
Coverage
Reimburses up to 80% of the personal payment obligation on a called guarantee, to a ceiling of $1,000,000 per guarantee.
Retention
You keep a 20% share so incentives stay aligned with your lender. PGI covers the rest.
Term
One-year, claims-made policy that renews annually for the full life of your loan.
Payout
The carrier pays you directly on a formal written demand. There is no subrogation pursued against you after settlement.
Eligibility

Written for the loans business owners actually sign

CSBFP loans

Canada Small Business Financing Program term loans.

Acquisition financing

Debt used to buy a business or partner buyout.

Lines of credit

Operating and revolving facilities with a personal guarantee.

Commercial real estate

Owner-occupied property loans and refinancing.

Equipment finance

Asset-backed lending where you have signed personally.

SBA-style term debt

Cross-border term facilities on referral.

Why it is credible

A regulated insurance product, not a workaround

PGI is a contract of insurance underwritten by a rated carrier. It does not alter your loan or your guarantee.

AM Best A+ carrier Regulated insurer Built for Canada
Claims-made basis

Cover responds to demands made while the policy is in force.

Independent of the lender

The guarantee stays fully enforceable; PGI protects you personally.

Documented wording

Coverage, retention and exclusions are set out in plain policy language.

Common questions

The essentials, answered

More detail lives on the full FAQ.

No. The guarantee stays fully enforceable. PGI sits behind it and protects you personally without changing the lender position.
You are. The carrier reimburses your validated personal obligation directly, up to the coverage limit.
Yes. PGI is built for Canadian business borrowers and the loans they commonly sign for.
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Test your current loan to see eligibility and likely terms. No obligation, no impact on your credit.

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